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Ontario's Premier Kathleen Wynne (centre) sits next to Provincial Finance Minister Charles Sousa (right) as the Ontario Provincial Government delivers its 2018 Budget , at the Queens Park Legislature in Toronto, on Wednesday March 28, 2018.
Ontario’s Premier Kathleen Wynne (centre) sits next to Provincial Finance Minister Charles Sousa (right) as the Ontario Provincial Government delivers its 2018 Budget , at the Queens Park Legislature in Toronto, on Wednesday March 28, 2018.

Earlier this week, we learned that our shared prosperity is at risk if Ontario does not adopt a different plan to achieve longterm economic growth.

Moody’s Investors Service, one of the leading international credit agencies, changed the outlook on the province’s ratings to negative from stable. In their statement, they argue “spending pressure will challenge the province’s ability to sustain balanced fiscal results across multiple years.”

They are concerned a slowing economy will struggle to maintain the ambitious, new spending pressure that was announced as part of the 2018 Ontario budget, compounded by projections our GDP is projected to drop from 2.7% to 1.7% growth by 2021.

This clarion call cannot be ignored. Harsher credit ratings make it pricier for governments to borrow money. In turn making it more difficult to plan for future spending.

As Moody’s reminds us in their statement, much of the positive movement within our economy has been due to low interest rates, giving consumers more confidence to take on debt.

This is, of course, unsustainable. Interest rates will go back up and when they do, consumer spending will go down. This will impact the whole of our economy and put pressure on the ability of the Government of Ontario to maintain its rosy outlook.

The announcements about pharmacare and child care expansion, as well as other initiatives were welcome by many Ontarians when first announced by the Wynne government this March. But they are tantamount to the promise of a pony when parents can hardly afford the barn.

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See Also:

(1) New poll puts Ontario PCs in ‘super-majority’ territory, NDP as opposition

(2) Ontario Tory Leader Doug Ford says he’s ‘dead against’ safe injection sites

(3) On pot sales, Ontario falls behind

(4) Ontario parties are promising thousands of new nursing-home beds, but can they really deliver?

(5) Doug Ford, Andrea Horwath and Kathleen Wynne to face off in CityNews debate

(6) Quit immediately, Doug Ford tells Hydro One’s board

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